71. A company purchased a POS cash register on January 1 for $5,400. This register has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the year of its useful life using the double-declining-balance method?
A. $500
B. $800
C. $864
D. $1,000
E. $1,080
72. A company purchased a rope-braiding machine for $190,000. The machine has a useful life of eightyears and a residual value of $10,000. It is estimated that the machine could produce 750,000 units of climbing rope over its useful life. In the first year, 105,000 units were produced. In the second year, production increased to 109,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year?
A. $25,200
B. $26,160
C. $26,660
D. $27,613
E. $53,160
73. A company purchased a machine for $970,000. The machine has a useful life of 12 years and a residual value of $4,500. It is estimated that the machine could produce 1,000,000 units over its useful life. In the first year, 200,000 units were produced. In the second year, production increased to 300,000 units. Using the units-of-production method, what is the book value of this asset at the end of the second year of operations?
A. $482,750
B. $487,250
C. $485,000
D. $291,000
E. $289,650
74. A depreciable asset currently has a $40,100 book value. The company owning the asset uses straight-line depreciation. They paid $70,000 for this asset and consider it to have a $1,000 salvage value with a year useful life. How long has the company owned this asset?
A. 5.2 years
B. 7 years
C. 10.2 years
D. 12 years
E. Cannot be determined from the given information.
75. A depreciable asset currently has a $24,500 book value. The company owning the asset uses straight-line depreciation. They paid $37,000 for this asset and consider it to have a $2,000 salvage value with a seven-year useful life. How long has the company owned this asset?
A. 2.5 years
B. 2.36 years
C. 2.1 years
D. 7 years
E. Cannot be determined from the given information.
76. Revenue expenditures:
A. Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities.
B. Are known as balance sheet expenditures.
C. Extend the asset's useful life.
D. Substantially benefit future periods.
E. Are debited to asset accounts.
77. Another name for a capital expenditure is:
A. Revenue expenditure
B. Asset expenditure
C. Long-term expenditure
D. Contributed capital expenditure
E. Balance sheet expenditure
78. Extraordinary repairs:
A. Are revenue expenditures.
B. Extend an asset's useful life beyond its original estimate.
C. Are credited to accumulated depreciation.
D. Are additional costs of plant assets that do not materially increase the asset's life.
E. Are expensed as incurred.
79. A company sold a machine that originally cost $100,000 for $60,000 cash. The accumulated depreciation on the machine was $40,000. The company should recognize a:
A. $0 gain or loss
B. $20,000 gain
C. $20,000 loss
D. $40,000 loss
E. $60,000 gain
80. A company discarded a display case that it had originally purchased for $8,000. The case had $7,200 worth of accumulated depreciation. The company should recognize a(n):
A. $0 gain or loss
B. $800 loss
C. $800 gain
D. $8,000 loss
E. $7,200 loss